SS/SCS/HCS/HB 2393 - This act creates a new type of program under the Enhanced Enterprise Zone Tax Benefit Act known as mega-projects. A taxpayer who establishes a mega-project within an enhanced enterprise zone will be allowed an income tax credit equal to a percentage of the taxpayer's new annual payroll for employees located at the project. In order to be approved as a mega-project, the new capitol investment must be projected to exceed three hundred million dollars and the project must be projected to create at least one thousand new jobs over a period of eight years. The new jobs created must have an average wage in excess of the county average wage and the taxpayer must offer health insurance to all new jobs and pay at least eighty percent of the premiums for such insurance. The taxpayer must provide an acceptable plan for repayment of tax credits received. Prior to final approval of a mega-project, the department and the taxpayer must enter into a binding contract which: sets out the taxpayer's repayment plan; obligates the taxpayer to construct the facility; provides for the cessation of tax credit issuance and repayment of all tax credits issued with a reasonable rate of return, upon a taxpayer's failure to meet certain requirements; ceases tax credit issuance when the amount of tax credits previously issued less the amount of repayments received results in negative cash-flow to the state in an amount equal to one hundred and fifty-five million dollars.
The Department of Economic Development is prohibited from approving any mega-projects after December 31, 2008, and from issuing any tax credits prior to January 1, 2013. The Department of Economic Development is prohibited from issuing more than forty million dollars in tax credits for all mega-projects annually. A taxpayer who receives approval for a mega-project may receive tax credits for up to eight years to be used to offset income tax liabilities. No taxpayer may receive more than forty million dollars in mega-project tax credits annually. The department is prohibited from issuing more than two hundred forty million dollars in tax credits for all projects under the mega-project program.
Prior to January 1, 2022, taxpayers who receive mega-project tax credits are prohibited from directly employing certain elected public officials of this state and certain employees of the department of economic development.
Any taxpayer who receives mega-project tax credits must provide an annual report to the Department of Economic Development and the senate and house appropriations committees containing the number of new jobs at the project site and the new annual payroll. A taxpayer who has been approved for issuance of mega-project tax credits will not receive tax credits in any year in which such taxpayer fails to meet eligibility requirements.
JASON ZAMKUS